Family business is the major driver of the Australian and Global economies however as we move into the fourth industrial revolution these businesses will face challenges and opportunities at an alarming rate. It is because of this rapidly changing business and social environment that family businesses are seeking information from advisers that is suited to their specific needs.
Family businesses are unique therefore it is absolutely critical that individual family members and the family business have access to independent information sources. It is also critical to the family that advisers understand the nuances of the sector and within individual families. Long gone are the days of “off the shelf” products or services and “the one-stop shop” for family business continuity.
Lloyd Russell and his team of trusted professionals have developed and suite twelve (12) forty-five (45) minute educational videos called Family Business Matters. This was developed in conjunction with the Artificial Intelligence platform BRiN and can be accessed by going to the BRiN website www.brin.ai/experts and downloading the app.
The following short ten (10) minute videos provide you with an insight into the content of each of the episodes. Lloyd is confident you will find these informative, educational, thought provoking and extremely relevant to you and your family business.
Why a Family Business is Not Just a Business
- What is a Family Business – Who, Why and How
- Understanding the family values and legacy
- Has a history, a present and a future focus
- Firstly it’s an attitude and mindset
- Entrepreneurship and Intrepreneurship
- Evolution through innovation, creativity and commitment
- Stewardship and Custodianship
- Community interactivity
How to Understand Multi-Generational Dynamics
- The family genome interaction with the business genome
- Attachment theory in practice / Emotional Intelligence
- Influences and impacts (internally and externally)
- Inter-generational differences
- Differences produce tension and well managed tension producers performance
- Weight of obligation and expectation V Sense of entitlement
- Always bring something new or of value into the business
- The evolution of roles and responsibilities from employee to family ambassador
Strategic Thinking for Best Practice Family Business Performance
- The differences between family business strategic planning and corporate strategic planning
- Family business must always think across generations and across the “three circles”
- Acute awareness of the business environment is key BUT must be accompanied with multi-period planning processes
- Embrace the past, understand and assess the current then focus on the future
- What’s good for the business is always good for the family – No exceptions and no excuses
- Plan for the five “Ds” of family destruction then plan for the business
- The many segments and dynamics of Inter-generational strategic planning
- Timelines of and reasons for family business strategic planning
The Governance of Family Owned Businesses
- Distinguishing between family interests, the family-owned business, and family involvement within the business
- Separating family and business affairs
- Managing family interests (family charter and family council)
- Governing the family-owned business for effective oversight
- The role and function of the board of directors
- Directorship (family directors, non-family directors)
- Purpose, strategy, reporting
- Input to and involvement with the family-owned business
How to Structure Family Businesses for Intergenerational Transfer
- The strategic purpose of structures – For the family first and foremost
- Legal structures to hold shares (trusts, direct holdings, LPs)
- Legal structure of the business (company)
- Pros and cons of various legal structures
- Companies and the transfer of wealth
- Instruments to expedite smooth intergeneration transfer (of power, of wealth)
- Traps in transferring shareholding/ownership
- Directorship (family members and non-family members)
How is Estate Planning Critical and Integrated
- Their purpose as an essential component of family business continuity and succession planning
- A topic for all family members to discuss and understand – Early and ongoing
- Surprises cause family disruption and decay family wealth
- Wills – What are they and how do they work
- The role of the Executor of the Will
- Powers of Attorney – What are they and how do they work
- Advanced Health Directives – What are they and how do they work
- Pitfalls of poor Estate Planning
Financial Management to Achieve Growth in Family Businesses
- Business profitability drivers and reporting to the wider family
- Separation of personal financial management from that of the business
- Retained earnings and distributions
- Finance and finance types – How these impact on the business and its structures
- Managing family members differing views to leverage (conservative vs aggressive).
- The double edge sword of debt – can help a business grow or lead to collapse if not managed properly.
- Debt management best practices – Review your banking & finance relationships every 3-5 years.
Growing and Protecting Your Family’s Wealth
- Financial Freedom and Peace of Mind for the business and the family
- It is critical to balance growing your wealth and protecting what you have built or are building.
- Separation of business wealth and personal wealth – The interactions.
- The many ways that adversely impact on family business wealth - Divorce or family breakdown, death, disease, disability, poor asset protection and poor debt management
- Risk management to achieve financial freedom – It’s not all about insurances
- What to do if you’re in trouble with your bank/ lender i.e. in “bad bank”.
How to Plan for Your Retirement From a Family Business
- What does retirement really look like in a family business – Letting go, handing over, roles and reactions to the subject
- Do you know what you want and is it achievable for you and the family?
- Are you ready for or have you planned your transition?
- Will the business thrive if you don’t hand on control?
- Who will take over the business, are they capable, are they going to change the existing strategy, can family members run a business together.
- How do you finance retirement without disrupting the business
- Banks see succession and transition as major risks to the family business – Banks love a succession plan.
The purpose, functions and benefits of a Family Office
- What is a family office and what functions does it perform for the family and the family business
- Types of Family Offices and Structures – Their purpose, benefits and pitfalls
- Traditional V Best Practice – Australia and internationally
- Why have a family office and how does a family office add value to the family and family business
- Who should manage the family office
- Pitfalls of the family office
- Foundations, Purpose and Measurements
- Global research for top Family Offices
How to harness innovation and entrepreneurship in the Family Business
- Understand how the family business has evolved already throughout the generations
- Types of innovation – It is visionary, dynamic and creative
- Entrepreneur V Intrapreneur – Later is inside a successful Family Business anyway
- Encapsulating the family dynamic for the benefit of the family business
- Go outside the family business and gain experience, ideas and exposure before returning to the family business
- Take educated, calculated and accepted risks BUT be ready to cut your losses
- Every family member has a contribution PLUS everyone on the workforce has a contribution
- Leverage the family governance systems to develop and test
Importance of Philanthropy in a Family Business
- Family businesses and their connection to community – Family, local, regional, national or international
- Philanthropy activities undertaken by family businesses – Purpose and objectives of the philanthropic activities
- Philanthropy comes in many forms, types, styles, structures and purposes
- Involvement of the workforce in the family’s philanthropic pursuits – Purpose, Culture, Longevity
- Philanthropy as part of evolution and corporatising the family business – Must be aligned with the family values AND being part of the family legacy
- Establishment and management of a Foundation
- Governance structures for formal philanthropic pursuits